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zysi [14]
4 years ago
9

Exercise 15-19 (LO. 3,4) Henry, a freelance driver, finds passengers using various platforms such as Uber and Grubhub. He is sin

gle and has no other sources of income. In 2018, Henry's net income from driving is $61,000. Assume Henry takes the standard deduction of $12,000 Click here to access the 2018 individual tax rate schedule to use for this problem. Compute Henry's QBI deduction and his tax liability. Bl deduction: 12,200 x Tax liability (round to the nearest dollar): 10,736X Feedback Check My Work With the reduction in the corporate income tax rate to 21 percent in 2018, Congress needed to provide a means of reducing the taxes on businesses that operate in different business forms (e.g., sole proprietors, partnerships, and S corporations). Congress accomplished this with the creation of the deduction for qualified business income (§ 199A), which applies to noncorporate taxpayers. To determine the "qualified business income deduction," one has to understand the definition of a "qualified trade or business" and "qualified business income."
Business
1 answer:
Oksi-84 [34.3K]4 years ago
5 0

Answer:

Qualified Business Income Deduction is $9,800

Tax liability = $4,564

Explanation:

Qualified business income is calculated by subtracting an individual's ordinary deduction from a qualified business or trade from the individual's ordinary income.

Net income = $61,000

Standard deduction = $12,000

Modified taxable income;

$61,000 - $12,000 = $49,000

QBI Deduction (Sec 199A) is the lesser of:

[0.2 × 49,000 < 0.2 × 61,000]

$9,800 < $12,200

Therefore Qualified Business Income Deduction is $9,800

Taxable income = $(49,000 - 9800) =$39,200

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Provide a detailed plan, including actual dollar amounts, for Xavier to wisely use the extra $400 per month from his raise. For
bixtya [17]

Answer:

He should pay his debt off, weather it is the credit card and bills, or student loan. Also he should put $50 into the emergency funds.

Explanation:

This is the best idea, why? Well, the bills and debt should come first, way before a vacation and before a new car where possible. If you chip away at your debt, and pay on time, your credit score will increase. Now, this is great because you are paying off owed money and paying bills ahead off time and on time, also your credit increases! Without good credit, you can`t get a loan for a CAR or a HOUSE! So if his credit is bad or meh, he might not get approved, therefore, he can get the car! Now emergency funds come rights after bills and debt. He has a measly $250 dollars. Now just put $50 dollars each month, you will be good. This is great because you are steadily increasing your savings by $50 each month which adds up fast without eating  up money.  These are the *MOST IMPORTANT* options and the smartest options. After all of this, then you could take a cheap vacation, but you have to pay bills and debt on time!

7 0
4 years ago
If long run aggregate supply (LRAS) is vertical, then which of the following statements must be true
Shtirlitz [24]

If long run aggregate supply (LRAS) is vertical, the statements that must be true is:  Aggregate demand does not affect the quantity of output.

<h3>What is aggregate supply?</h3>

Aggregate supply can be defined as the amount of goods or product a firm is expected to produce and sell or made available to buyers at a particular period of time.

Hence, assuming aggregate supply is vertical, aggregate demand  which is the amount of goods buyers are willing to buy will not not affect the quantity of output or goods produced.

Learn more about Aggregate supply here:brainly.com/question/25749867

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6 0
2 years ago
Isabella Canton is considering taking a part-time job at a local clothing store. She loves the store and shops there often, but
lana [24]

Answer:

The $125 income from the new job - relevant (A)

The $40 income from the library - irrelevant   (B)

The $50 nonrefundable registration fee Isabella paid for the basket-weaving class - irrelevant (C)

The $15 cost for gas - relevant (D)

The $75 per month that Isabella spends for clothing and The time Isabella spends volunteering at the animal sanctuary. - Irrelevant (E)

Explanation:

(A) the income from the new job is relevant. It is the wages she will receive per week

(B) the library is irrelevant as it would not have to leave this job

(C) that is a sunk cost. Is irrelevant for the decision making  

(D) the gas is a variable cost related to the job offer. It is relevant

(E) the consumer preferences are not relevant for their decision on the job offer. Also their volunteering is irrelevant.  Is not related to the job

8 0
4 years ago
When your ability to divide your attention is impaired the chances of being involved in a collision increase a bal as low as has
allsm [11]
<span>When your ability to divide your attention is impaired the chances of being involved in a collision increase. A BAL as low as <u>0.02</u> has been shown to affect divided attention while driving.

BAL stands for Blood Alcohol Concentration Level. As the BAL increases, so does the level of impairment. The nearer the BAL is to 1, the more probable it is to meet an accident while driving. Thus, it is better to either ride a cab in going home or sleep in a safe place until the alcohol leaves the bloodstream.</span>
5 0
3 years ago
Read 2 more answers
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solniwko [45]

When the individual calculates the effective rate of the loan, the most appropriate statement is the effective rate will exceed the nominal rate.

<h3>What is effective annual rate?</h3>

The effective annual rate (EAR) is the interest rate for the entire year. Interest Charges Interest expense is incurred when a corporation funds itself with debt or capital leases.

Interest appears on the income statement, but it can also be earned on an investment or paid on a loan as a result of compounding interest over time.

It is usually higher than the marginal rate and is used to evaluate different financial products with varying compounding periods - weekly, monthly, yearly, and so on.

When the number of compounding periods is increased, the effective yearly interest rate rises over time.

Therefore, the correct option is A.

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3 years ago
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